LVLU Stock Forecast & Price Target

Lulus Fashion Lounge Holdings Inc. demonstrated robust growth, as evidenced by a 76% year-over-year increase in wholesale revenue during the fourth quarter, driven by strategic collaborations with key retailers. Additionally, the company's ambassador program saw a significant 50% growth, resulting in a 33% rise in social engagement quarter over quarter, highlighting effective marketing and customer outreach. Furthermore, the adjusted EBITDA forecast for FY25 has improved substantially to $3.0 million, reflecting a positive shift in the company’s financial outlook compared to the previous estimate of a loss.

Lulus Fashion Lounge Holdings Inc. has experienced a significant decline in active customers, with a 7.4% year-over-year drop to 2.62 million from 2.83 million in the same period last year. The company reported a margin decline of 240 basis points to (5.0%), surpassing the consensus estimate of down 650 basis points to (9.1%), indicating worsening profitability pressures. Additionally, inventory levels have shown a concerning downward trend, decreasing 7.3% year over year, which may suggest challenges in demand or inventory management.